GBPUSD: Sideways Range Still In Force

Although weakness continues to be seen, a clear nearer term directional moves remains on hold as a sideways trading range is now in force. While overall medium term trend remains to the upside, a break and close above its 2009 high at the 1.6662 level will have to occur to resume that uptrend and open the door for further upside towards the 1.6800 level and then the 1.7000 level, its psycho level. Conversely, supports are situated at the 1.6209 level, its Jun 16'09 low followed by the 1.6000 level, its psycho level ahead of the 1.5801 level, its Jun 08'09 low. The last two levels are expected to reverse roles and provide support if tested again. All in all, with sideways trading range now seen, break out of that range is expected to create meaningful directional moves.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are the author's own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which the author incur any responsibility. The does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report